Question

When preparing a monthly budget, describe how net income is calculated.
a. Net income is calculated by taking the expenses subtotal and subtracting the income subtotal.
b. Net income is calculated by taking the income subtotal and subtracting the expenses subtotal.
c. Subtracting the expenses subtotal from the net income will give you the income subtotal.
d. Adding the expenses subtotal to the net income will give you the income subtotal.

Answer 1

gross income is before taxes(or expenses)are taken out....net income is after taxes(or expenses)are taken out.

So I believe ur answer is : B

Answer 2

Answer: (b). Net income is calculated by taking the income subtotal and subtracting the expenses subtotal.

Step-by-step explanation:  When we prepare monthly budget, we always keep in mind that the net expenses should not exceed our monthly income, otherwise we will be in debt.i.e,.

Net income= Income subtotal-expenses subtotal.

Here, options (a), (c) and (d) are incorrect. The only correct statement id (b).

Thus, (b) is the correct option.